KWG Resources Inc has announced that, under the terms of the Option Agreement with Spider Resources Inc and Freewest Resources Canada Inc respecting the Freewest Option Project, KWG became operator on April 1st 2010.

Each of KWG and Spider currently hold a 26.5% interest in the Freewest Option Project which contains the Big Daddy chromite deposit and have the right to earn an additional aggregate 7% interest by spending USD 10 million or by delivering a positive feasibility study on or before March 31st 2012.

As Operator, KWG has proposed to Spider that KWG and Spider undertake a scoping and related resource definition study on the Big Daddy chromite deposit as part of their earn in. The scoping study would be completed in conjunction with a feasibility study to be undertaken by KWG for construction of a railroad from the deposit to Exton, Ontario along claims held by KWG’s subsidiary Canada Chrome Corporation.

Mr Frank Smeenk president of KWG said that "As KWG is undertaking a railroad feasibility study through its subsidiary Canada Chrome Corporation, we have an opportunity to demonstrate the economics of using a rail line to transport ore from the Ring of Fire to market. There are more than a few mineral discoveries around that are not economic because they have no transportation option. KWG therefore had Canada Chrome Corporation stake claims along terrain best suited to a railroad right of way. This proposed railway should support the viability of the Big Daddy deposit and enhance the value of our 1% Net Smelter Royalty interest in it and the Black Thor and Black Label deposits."